Correlation Between Citigroup and PARKER
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By analyzing existing cross correlation between Citigroup and PARKER HANNIFIN P MEDIUM, you can compare the effects of market volatilities on Citigroup and PARKER and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Citigroup with a short position of PARKER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and PARKER.
Diversification Opportunities for Citigroup and PARKER
Excellent diversification
The 3 months correlation between Citigroup and PARKER is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and PARKER HANNIFIN P MEDIUM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PARKER HANNIFIN P and Citigroup is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Citigroup are associated (or correlated) with PARKER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PARKER HANNIFIN P has no effect on the direction of Citigroup i.e., Citigroup and PARKER go up and down completely randomly.
Pair Corralation between Citigroup and PARKER
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.66 times more return on investment than PARKER. However, Citigroup is 1.52 times less risky than PARKER. It trades about 0.27 of its potential returns per unit of risk. PARKER HANNIFIN P MEDIUM is currently generating about -0.13 per unit of risk. If you would invest 6,889 in Citigroup on September 14, 2024 and sell it today you would earn a total of 307.00 from holding Citigroup or generate 4.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. PARKER HANNIFIN P MEDIUM
Performance |
| Timeline |
| Citigroup |
| PARKER HANNIFIN P |
Citigroup and PARKER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and PARKER
The main advantage of trading using opposite Citigroup and PARKER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, PARKER can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in PARKER will offset losses from the drop in PARKER's long position.| Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
| PARKER vs. Delek Logistics Partners | PARKER vs. JD Sports Fashion | PARKER vs. Eastman Kodak Co | PARKER vs. Fernhill Beverage |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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